CSR Report - Sustainability Disclosure Database

Sapporo Group
CSR Report
2013
Message from the President
Industry by industry, region by region,
creating growth and fresh value
through our business strengths
is central to Sapporo Group CSR.
1
Sapporo Group CSR Report 2013
A Management Philosophy
Based on Established Strengths
The Sapporo Group can trace its roots to the 1876
establishment of Hokkaido Development Commission Beer
Brewery. Following our management philosophy, “to make
people’s lives richer and more enjoyable,” Sapporo has since
grown into a business group with a wide range of
developments, from beer and spirits to foodstuffs, soft drinks,
restaurants, real estate and even international endeavors.
Sapporo Group’s approach to CSR, above all else, is to
pursue operations which embody this management
philosophy by contributing to happier lifestyles and society.
Though times may change, the motivation behind our
corporate activities remains the same.
Sapporo Group’s strengths include over 130 years of
beer-making history, including traditionally cultivated
fermentation techniques. Additionally, as the world’s only beer
maker dedicated to the cultivation of both barley and hops,
the raw ingredients used to produce beer, Sapporo Group
research has led to the development of a variety of new and
excellent breeds.
In recent years we have also begun applying Sapporo’s
fermentation expertise towards the development of lactic acid
bacteria. Originally a subject of research as part of quality
control during beer brewing, lactobacilli have garnered
attention for their healthy properties. The Sapporo Group
hopes to open up new possibilities in the use of lactobacilli in
order to protect liver function, alleviate stress-induced sleep
disorders, and otherwise support our customers’ lives.
Research into raw ingredients, meanwhile, has been focused
on lemons. Integrated under group management at the
beginning of the year, Pokka Sapporo Food & Beverage boasts
the number one product in the industry under the “lemon”
category, Pokka Lemon. As a result, the Sapporo Group has
been pursuing research and development into the wider use
of lemons as an ingredient in order to create products with
even greater value.
Development Rooted in Local Community Bonds
The Sapporo Group values the historical connection it holds
with local communities, and pursues shared development in
step with those regions. For instance, the group has helped
contribute to community development through real estate
endeavors in areas such as its founding hometown of Sapporo,
in Ebisu (an area named for Sapporo’s Yebisu brand of beer),
and in Ginza, where we opened Japan’s first beer hall.
Additionally, in areas such as Nagoya, where the Pokka
company was first founded, and in other locations where the
Sapporo Group has manufacturing plants, sales offices or
stores, or sources its local ingredients, we value the connection
and partnerships we share with the community. Through the
development of locally rooted companies we pursue initiatives
which will contribute to those regions.
One result of these activities is the creation of “regional
pacts,” which are designed to stimulate the local economy,
promote collaborative disaster prevention, protect and
conserve the environment, and offer support for the education
of future generations. Sapporo Group has already established
pacts in 16 regions throughout the country.
Overseas Development Founded on Local Trust
When pursuing global development, we at Sapporo Group
work faithfully to construct a foundation for overseas business
which is built from dialogue with the local community. As a
result of these efforts, the Sapporo brand holds the number
one share in the North American market among Asian beers.
Likewise, Pokka is a major brand in the Singaporean green tea
beverage market, with a market share of nearly 70%. Building
on the foundations of trust we have cultivated in local
communities, the Sapporo Group also plans to pursue business
developments in alcoholic beverages, soft drinks and
foodstuffs in Southeast Asia (focusing especially on Vietnam
and Singapore) as well as entry into the soft drink market in
North America. Through local and international developments,
Sapporo is approaching its next stage in growth.
Fulfilling Our Increasing Responsibility to Society
The partnership between Sapporo and Pokka has brought new
synergy to the group, and created more opportunities than
ever for the introduction of new products with broad appeal to
men and women of all ages. At the same time, our
responsibilities towards society have greatly increased.
In 2011, in order to ensure promotion of CSR activities
which capitalize during development on the unique strengths
of our individual companies, we established our Sapporo
Group Important CSR Issues. In order to address these issues
with concrete initiatives, in 2012 we also established our 2013
Action Plan and our 2014 Midterm Goals. These goals and
plans are shared by all group companies. Through the
implementation of appropriate activities, we look forward to
fulfilling our responsibility to the many stakeholders whose
lives the Sapporo Group has touched.
Tsutomu Kamijo
President and Representative Director, Group CEO
Sapporo Holdings Limited
Sapporo Group CSR Report 2013
2
Sapporo Group CSR
Sapporo is a corporate group committed
to fulfilling consumer expectation and trust.
Sapporo Group’s Basic CSR Policy
Sapporo Group CSR Promotion System
The Sapporo Group carries out CSR activities with the aim of
fulfilling its responsibilities to society, heightening stakeholder
trust, and increasing corporate value by translating its
management philosophy and policy into concrete results.
In March of 2006, in order to spread CSR awareness among all
group employees, we established a Basic CSR Policy.
Our New Management Framework, meanwhile,
established as a long-term management policy in October
2007, sets 2016, the 140th anniversary of the group’s founding,
as its target year. The plan sets “CSR-focused management” as
the most important theme in an “overall strategy for
enhancing group value.”
CSR initiatives are an integral and important part of
business operations at the Sapporo Group. Following our Basic
CSR Policy, we are actively promoting group-wide activity.
Sapporo Holdings’ Group CSR Promotion Committee is chaired
by the President and Representative Director/Group CEO. The
committee sets overall policies for the promotion of Sapporo
Group CSR management and carries out internal group
coordination and regulation.
The Group CSR Division, CSR Social Environment Working
Group, of Sapporo Group Management (an administrative
subsidiary within Sapporo Holdings) drafts and implements
policies for the promotion of CSR initiatives at individual group
companies. Additionally, they hold monthly meetings where
the officers in charge of CSR at individual companies gather to
share information and review progress.
Overview of Sapporo Group CSR Promotion System
(as of January 1, 2013)
Sapporo Holdings, Ltd.
Sapporo Group’s Basic CSR Policy
“The Sapporo Group is committed to
fulfilling consumer trust by
conducting business in a
manner which brings
Group CSR Promotion Committee
Chairman: President and Representative
Group CSR Officers
Sapporo Group Management, Ltd.
Group CSR Division
Office: CSR Social Environment Working Group
Management Strategy Division
Corporate Communications Division
happiness to our customers.”
Since the Sapporo Group’s founding in 1876, we have
existed in harmony with society and have been
sustained by the happiness of our customers as we
forged our path to the present. From here on, the
Sapporo Group will aim to grow as a company and
contribute to sustainable social development by
remaining an honest group that makes customers
happy, based on our management philosophy.
Sapporo Breweries, Ltd.
CSR
Officer
Social
Environment
Office
Sapporo International, Ltd.
CSR
Officer
CSR Staff
Pokka Sapporo
Food & Beverage, Ltd.
CSR
Officer
CSR Staff
Sapporo Lion, Ltd.
CSR
Officer
CSR
Promotion
Office
Sapporo Real Estate Co., Ltd.
CSR
Officer
CSR Office
“To make people’s lives richer and more enjoyable.”
3
Sapporo Group CSR Report 2013
Communicating with Stakeholders
“Stakeholders” refer to all those who come into contact with
the Sapporo Group as it pursues its corporate activities. In
addition to our obligations towards these stakeholders, we at
the Sapporo Group must also fulfill our responsibilities towards
the surrounding society and environment.
At the Sapporo Group, we believe the foundation behind
successful Corporate Social Responsibility lies in two-way
communication with our diverse stakeholders. As a result, we
actively build opportunities for dialogue with stakeholders,
utilizing their feedback to continuously inspect, evaluate and
improve management.
Main Methods of Sapporo Group Stakeholder Communication
• Customer support (telephone,
email, etc.)
• Customer-oriented events
• Information disclosure via
website
• Print/online newsletters
• General stockholder meetings
• Information disclosure through
IR tools
• Information sessions and private
interviews for investors
• SRI Questionnaires
Stockholders
• Workplace communication
• Dialogue through labor
unions
• Company
newsletters/intranet
• Internal reporting hotlines,
other consultation services
Employees
and
their families
Customers
Local
communities
Sapporo
Group
• Sponsorship of local events
• Participation in planning of
locally sponsored events
• Factory tours
NPOs/NGOs
• Participation in NPO
sponsored events, etc.
• Cooperation in
social/environmental
activities
• Communication via
industry groups
• CSR questionnaires
Society
• Information sessions on
procurement policy
• Information disclosure via
website
• Questionnaires and other
surveys
• Cooperation to enhance
quality
Clients/
affiliates
Municipalities
Environment
• Participation in government
sponsored seminars
• Cooperation with government
sponsored events
• Communication via industry
groups
• Questionnaires
• CSR reports and other information
disclosure
• Participation in environmental
activities
• Environmental education
• Environmental questionnaires
Sapporo Group CSR Report 2013
4
In South Korea
Cooperating with Maeil Dairy to Focus on
Alcoholic Beverage Sales
Maeil Dairy Industry Co., Ltd. is a major manufacturer of
dairy products in South Korea. Through investment in
Maeil group companies, we have been exporting and
selling Sapporo products for the home and
bar/restaurant markets since 2011.
In Taiwan
The Only Local Producer of Japanese Beer
Through contract with Taiwan Tobacco and Liquor Corporation (TTL), we are the only Japanese beer manufacturer to carry
out local production.
In
Asia & Oceania
The Pacific Rim is positioned as an important region for the next step
in growth for the Sapporo Group. We aim to increase brand penetration
by using Vietnam and Singapore as bases of operations.
In Vietnam
Accelerating Strategies for Southeast Asia through
Operation of On-Site Brewery
Local production went into effect at the completed Long An
brewery in November 2011. Marketing efforts are in development to use the brewery as a central base in Sapporo Group’s
strategy for Southeast Asia.
In Singapore
Pokka, a Major Brand in the Local Market
Capitalizing on Pokka’s high share and brand
strength, in addition to previous developments in the
soft drink industry we have also begun promotion of
Sapporo brand beer.
Special
Feature
Overseas Development, Local Roots
Hand in hand with
local communities
and residents overseas.
Making Sapporo and Pokka beloved brands of choice worldwide.
Developing businesses with regional roots, learning from
local residents and society as we build up the brand from zero,
and strengthening our bond to the community—
this is the important process by which we at the Sapporo Group
pursue global development.
In areas throughout the world our faithful adherence to this process,
from the first steps of development and onwards,
continues to bear Sapporo steadfast results.
Yoshiyuki Mochida
President and Representative Director, Sapporo International, Inc.
5
Sapporo Group CSR Report 2013
In Canada
Establishing our Place as
the Top Brand in Premium Beer
Sleeman leads the way in Canada’s premium
beer market. Through active development of
Sleeman and Sapporo brands we aim to further
expand that market.
In
North America
Sapporo boasts the number one share among Asian beers in the US market while
Sleeman continues to show growth in the Canada’s premium beer market.
Focusing on these two brands, we aim for continued expansion in the North
American premium beer market.
In USA
Using our Position as “No. 1 among Asian Beers”
to Expand into the Alcoholic Beverage/Soft Drink Markets
Capitalizing on our position as number one in the US market among Asian
beers, we are engaged in further strengthening sales promotions in the
premium beer market. Additionally, in January of 2012 we acquired a
majority of shares in the country’s largest private-brand chilled beverage
manufacturer, Silver Springs Citrus, and have begun development of soft
drink business in North America.
In Australia
Development in Premium Beers through
Cooperation with Coopers
In July 2011 we signed a licensing agreement with Coopers,
the number three beer manufacturer in Australia, for local
production and sales of Sapporo.
Working hand in hand with the people of the
world as we aim to raise brand value higher
than ever before.
In recent years, many Japanese corporations have been aiming
for fast overseas development, aggressively pursuing M&A
tactics, such as buyout of or partnership with influential local
companies, regardless of their own brand development. The
Sapporo Group, however, has drawn a line between itself and
these other companies, instead implementing its own unique
global strategy. The heart of this strategy is “Pride in the
Sapporo Brand.” By building our brand from zero recognition
and fostering trust with local residents through faithful
practices, we are dedicated to establishing the Sapporo brand
as one with ties to each region and community.
First reaching number one in the American market among
Asian beers in 1985, the Sapporo brand has maintained that
position for 26 years*1 and running. Additionally, in 2006,
Sleeman Breweries, the leaders in Canada’s premium beer
market, was inducted into the Sapporo Group. And since 1977,
when the Pokka*2 beverage manufacturing company was
established in Singapore, our presence in the Southeast Asian
beverage and restaurant businesses has continued to expand.
In particular, the Pokka brand is exceptionally popular in
Singapore, where it rivals Coca Cola as one of the beverage
industry’s most major brands.
In 2011, we became the first Japanese beer manufacturer
to establish its own brewery in Vietnam, beginning local
production and sales. With Sapporo quality as highly esteemed
in Vietnam as it is in Japan, we plan to use the Long An
Vietnam brewery as a base for expanding sales of Sapporo
throughout Southeast Asia.
Working diligently, hand in hand with the people of the
world, we hope to continue to contribute through our
products to the rich and enjoyable lives of local residents.
*1 As of 2011. Results for 2012 are yet to be confirmed.
*2 Pokka merged with Sapporo Beverage Co., Ltd in January 2013 to become
Pokka Sapporo Food & Beverage Ltd.
Sapporo Group CSR Report 2013
6
Headquarted in Singapore, with
development in 60 countries worldwide.
Overseas operations began for Pokka in the 1970s, with
export of Japanese beverages to the Middle East. In 1977,
while Singapore was quickly booming as a center of business
in Asia, the present-day beverage manufacturing company,
Pokka Corporation Singapore (PCS), was established. PCS
soon became the core headquarters for Pokka, beginning
with operation in Singapore while expanding overseas with
export and sales in regions such as the Middle East, Europe,
Asia and Oceania. Pokka went on to strengthen its
production system, constructing a new plant in 1988 and
establishing a jointly managed manufacturing contractor in
1992 in neighboring Malaysia.
Beloved by many, the POKKA brands are currently sold in
approximately 60 countries throughout the world. In
Singapore, especially, POKKA has grown into one of the
region’s top brands, with an approximately 46% share of the
POKKA Market Share in Singapore
Tea beverages
46.3%
Green tea
beverages
64.6%
Source: ACNielsen MAT, Nov. 2012
Special
Feature
Overseas Development,
Local Roots
1
tea-based beverage market, including an approximately 65%
share in green-tea based beverages.
Growing as a major beverage
manufacturer in Singapore by offering
products specially suited to local needs.
The market needs for beverages can vary greatly based on
factors such as local climate and dietary culture. A hit
product in Japan may not be as successful overseas.
Additionally, Singapore is a multiethnic country with highly
varied tastes and dietary cultures, and so presents a
significant challenge when developing new products. Pokka,
however, proactively recruits talented local staff, training
them into leading business people and subsequently
promoting them to positions of high responsibility. This
ensures that operations at Pokka are tied to the local
community. Additionally, Pokka features a direct sales and
distribution system, allowing for feedback from all customers,
including wholesalers, grocery stores and individual
restaurants. This feedback is used in the development of
products which are specially suited to local needs.
Steady, faithful practices such as these have led to the
development of many original, local hit products, such as
Carrot Fruit Juice and Aloe Vera Juice—products which
have greatly raised recognition of the POKKA brand name.
Pokka’s most popular product, however, has been its
Jasmine Green Tea. While Chinese teas have always been a
familiar feature of the Singaporean dietary scene, “Jasmine
Green Tea” was a novel and unfamiliar drink. In developing
the product, Pokka thoroughly consulted local tastes. Unlike
POKKA
Singapore
The future with
global beverage brand POKKA
Headquartered in Singapore, where it boasts the top market share,
Pokka offers high-quality beverages specially suited to the needs of individual markets.
Headquartered in our local subsidiary in Singapore, Pokka is a comprehensive beverage
manufacturer, handling everything from development and marketing to production and
sales. Following their business philosophy, “Right Product to Right Market,” Pokka strives
to introduce the best beverages for each market’s needs. Beloved by many, the POKKA
brands are currently sold in approximately 60 countries throughout the world, including
countries in Asia, Oceania, the Middle East and Europe.
Shinichi Soya
Pokka Singapore Group Chairman,
Managing Director, Strategic Planning Division
POKKA SAPPORO Food & Beverage, Ltd.
7
Sapporo Group CSR Report 2013
in Japan, sweetened
green teas are
currently preferred in
Southeast Asia.
Another reason for
POKKA’s popularity is
their tradition of high
quality, originally
”Sparklin’” Carbonated beverage mascot
in street sales campaign.
fostered in Japan. In
order to become “Asia’s No.1 in Quality,” PCS acquired ISO 9000
series international quality and HACCP certifications from early
on, and has always striven to improve quality control systems.
As a result, in recognition of the high quality of POKKA
products the AVA (Agri-Food & Veterinary Authority of
Singapore) has awarded PCS its top ranking of Grade-A for 16
consecutive years and running.
Raising brand value on the global market
while strengthening local bonds of trust.
As one link to the local Singaporean community, Pokka actively
promotes joint industry and university projects. For instance,
Pokka has collaborated with local Singapore Polytechnic in the
research, development and marketing of new products,
releasing items onto the market such as Kalamansi Drink, which
makes use of local native citrus fruits. Pokka also strives to make
direct contributions to society, such as aid for children from
S
CSR TOPICS
Participation in Charity Event
“Christmas ChariTrees”
Pokka engages in a variety of initiatives designed to
contribute to local communities, and in 2012 participated
for the second year in a row in the Christmas tree light-up
event held in Singapore’s Marina Bay. The Christmas tree
light-up is a charity event held by
the National Council of Social
Service in order to provide aid to
approximately 300,000 children,
elderly and so on suffering
from poverty, disability and
other disadvantages.
In addition to a donation of
10,000 Singapore Dollars,
employees from Pokka carried
out design and decoration of
the tree.
disadvantaged backgrounds, and sponsorship of reformation
programs for inmates.
Moving forward, Pokka will continue to pursue corporate
operations grounded in a close connection to the local
community, and to remain true to its philosophy of “Right
Product to Right Market.” While strengthening the bonds of
trust with regional stakeholders throughout the world, Pokka
also aims to raise POKKA brand value on the global market to
greater levels than ever before.
takeholder Voices
Pokka boasts top-class sales results within Singapore.
NTUC FairPrice is one of the largest retailers in Singapore with the retail network of more than 260 stores island wide. Pokka
is one of our top business partners and we are very pleased to be able to work with Mr. Alain Ong and his team. Under Mr.
Alain Ong’s leadership we are able to see Pokka range of products growing rapidly at our stores over the last few years. This
is the result of good foresight aided by successful implementation of strategies by Alain.
On behalf of Fair Price, I would like to take this opportunity to thank Alain and his staff for their hard work and dedication
for the strong sales performance with FairPrice over the years. We are also grateful for the resolute support and alliance from
Pokka Corporation (Singapore) Pte. Ltd. and we hope to continue to build on these relationships for many years to come.
Tng Ah Yiam
Managing Director of NTUC FAIRPRICE and the Co-Chair for ECR SINGAPORE
Sapporo Group CSR Report 2013
8
Centered on the expanding Vietnamese
market, Sapporo is ready to meet Asia’s
growing demand.
The delicious flavor and high quality of Sapporo brand beer
has earned it popularity, not only in Japan, but also in North
America. In order to introduce the delicious taste of Sapporo
Beer to even more people throughout the world, we have
been on the lookout for opportunities to establish
production bases in Southeast Asia, where demand for beer is
on the rise. As our first step in expansion, we at Sapporo
chose to locate in Vietnam.
Among Southeast Asian countries, Vietnam’s population
is comparatively high, while the average age of its citizens is
only 28, promising incredible growth in the mid- to
long-term. Beer, meanwhile, is a widely popular drink,
accounting for the majority of alcohol consumption in
Vietnam. As the national income rises, consumption of beer is
Beer Consumption in Vietnam
Per capita
(10,000 kℓ)
59.1
44.9
600
29.1
400
18.2
20.3
23.2
202
200
155
(ℓ)
66.4
800
26.0
230
expected to increase
even further and the
market to expand.
At the new brewery
in Long An Province, on
the outskirts of Ho Chi
Minh, preliminary
brewing began in August
2011, with full-scale
operations commencing
Sapporo Premium, for the Vietnamese market
in November 2011.
Products shipped from the brewery are sold not only in
Vietnam, but also in Singapore, Malaysia and Australia.
Additionally, in autumn of 2012 exports were expanded to 10
countries in total, including the Philippines, Indonesia and
Myanmar. That number is expected to rise even further in 2013.
Current yearly production capacity at the Long An
brewery is 40,000kl, but future expansion to up to 150,000kl is
possible, ensuring the full potential to meet the expanding
needs of the Asian and Oceanic markets.
70.0
680
580
45.0
420
30.0
260
15.0
175
Total
0
2007
2008
2009
2010
2011
2015
2020
2025
Source: results up to 2011—Euromonitor International, Beer in Vietnam, February 2012;
Predicted values, 2015 and after—Vietnamese Chamber of Commerce and Industry
Special
Feature
Overseas Development,
Local Roots
2
Proactive development of in-store marketing
Sapporo
Sharing Delicious Sapporo Beer
with the people of Southeast Asia
The Sapporo Vietnam Long An Brewery, the first Japanese beer brewery in Vietnam,
has opened its doors for operation.
Across Japan and North America, Sapporo remains the beer of choice for
many loyal customers. In order to introduce the delicious taste of
Sapporo Beer to even more people throughout the world, the Sapporo
Group has become the first ever Japanese beer manufacturer to
establish its own brewery in Vietnam. Following operational practices
rooted in the local community, the brewery offers high quality beers in
order to meet the vigorously growing demand of Southeast Asia.
Hirofumi Kishi
General Director
Sapporo Vietnam, Ltd.
9
Sapporo Group CSR Report 2013
Long An
Vietnam
Ho Chi Minh
Training the next generation of
professionals to produce the very finest
in beer.
In order to ensure smooth operation of the Long An brewery,
we at Sapporo diligently pursue practices which are tied to
the local community. While Japan and Vietnam are both
located in Asia, the culture and eating habits, life and work
styles, and even the climate and water quality of the two
countries are different.
As a result, Sapporo Vietnam has not only developed
marketing which meticulously conforms to the needs of local
customers, but has also poured its efforts into raising the craft
and techniques of local workers whose experience in
producing beer is more limited. Experienced Japanese
engineers worked with their young Vietnamese counterparts
on a one-to-one basis, carefully teaching the basics of beer
creation and quality control methods while imparting a spirit
of craftsmanship.
Additionally, liquidity in the Vietnamese labor market is
higher than it is in Japan, with people frequently changing
jobs on a shorter cycle. In order to retain staff for longer and
develop higher levels of
skill, we encourage both
in-house and outside
training, and also hold a
variety of company
events intended to
foster a sense of
Offering technical guidance to Vietnamese staff
company identity and
S
CSR TOPICS
Long An Brewery Cooperates
in Strict Environmental Regulation
With the sudden economic development of Vietnam in
recent years, concerns over corporate impact on the
environment have grown. Strict regulations are in
place, especially in the Long An province which aims to
strengthen its environmental frameworks. In response,
our Long An brewery is making full use of the advanced
environmental technologies developed by the Sapporo
Group in Japan, implementing
careful measures so as to achieve a
high standard of excellence. For
instance, the newest equipment has
been installed for the treatment of
industrial wastewater, purifying the
brewery’s drainage to a level which
is actually steps higher than the river
water into which it is released.
Additionally, clean LP gas is used as Strict monitoring of
wastewater
boiler fuel, for energy efficiency on
par with that of Japanese plants.
camaraderie among employees. As a result of these efforts, not
only have we trained superior general staff, but the important
position of Technology Division Manager has already been
filled by a Vietnamese member.
In order to grow as a beer manufacturer beloved by the
local community we will continue to value each and every one
of our employees, to offer delicious high-quality beer, and to
proactively pursue environmental and social contributions.
takeholder Voices
In addition to technique and knowledge, I also learned about the importance of individuals
and companies growing in harmony.
After entering the company, a highly-experienced senior engineer from Japan began educating me in the technical
expertise and specialist knowledge accumulated by the Sapporo Group. At the same time, I also learned about the
importance, when functioning as a corporation, of individuals and companies growing in harmony. Our most important
duty is to supply the brewery with safe, stable and reliable utilities* while also conforming to the law, which makes
specialist knowledge absolutely indispensable. In the future I plan to take part proactively in regular study sessions and
outside workshops, so as to become every bit as skilled as the engineers of Sapporo Japan.
*The electricity, water, steam and other essentials in use at the factory.
Le Trung Hieu
Engineering Department, Sapporo Vietnam Long An Brewery
Sapporo Group CSR Report 2013
10